a name of banking sector is on par with OK 🇧🇷VOUCH3) in the monthly recommended wallets of 27 analysts. The financial institution even removed the mining company from the throne, having been the preference of the last month.
In December, the Itau 🇧🇷ITUB4) is present in 19 of the 27 portfolios that participate in the survey of Money Times🇧🇷 Vale has received three more nominations since November and managed to share the top spot.
Analysts who have Itaú shares in their portfolio are based on the positive results of the third quarter. According to Agora Investimentosthe company showed solid trends in the most recent earnings season.
“The bank continued to benefit from a mix of loans more riskyand higher interest rates, while provisions increased as defaults rose. deteriorated,” he says.
“While we remain concerned about asset quality, we believe the bank has managed to offset a higher cost of risk with a financial marginstronger edge, while maintaining a relatively stable coverage ratio, in line with the 2019 average″, completes the brokerage.
Another factor that draws attention is the scale of the company. Itaú is the largest private bank in Brazil and has strong penetration and a robust presence in key areas such as credit cards, auto loans, asset management and insurance, highlights the Investment Guide🇧🇷
For Agora, the main question now is to know what how sustainable iswill the growth of loans in risky lines (i.e. credit cards and personal loans) in the coming quarters.
The market is showing more optimism in relation to the mining and steel sector. Vale’s shares returned to the recommended portfolio of shares of the BTG Pactual🇧🇷
Monitoring the fiscal risk in the face of the new government’s “aggressive proposal” to exclude expenditures that could reach up to R$ 198 billion from the ceiling, the institution begins December with a more cautious stance.
With the strategy of building a portfolio with assets less correlated with the Brazilian economy, BTG included Vale in the recommendations in order to increase exposure to the dollar and expose itself to the potential reopening of the Chinese economy.
BTG expects Chinese economic activity to gradually recover as the government announces further easing of restrictions and provides support for the country’s real estate market.
In addition, the bank considers the entry of a “reference shareholder” (Cosan) on the mining company’s board to be positive and projects the base metals division’s potential for generating value in the long term.
BTG expects that most of Vale’s medium-term strategic agenda will be focused on shareholder cash returns, with yield 10-11% expected for 2023, including share buybacks.
Despite receiving fewer nominations, 10 other roles deserve mention. On the list of the most recommended for December are Petrobras 🇧🇷PETR4🇧🇷 Eletrobras 🇧🇷ELET3) and WEG 🇧🇷WEGE3🇧🇷
Check out the 12 stocks with the most mentions in recommended portfolios for the month:
The lifting of Money Times was carried out based on information from recommended portfolios disclosed by 27 institutions. For December, 93 actions were indicated, totaling 267 recommendations.
Participated in the survey Ágora Investimentos, Ativa Investimentos, BB Investimentos, Benndorf, BTG Pactual, CM Capital, Eleven, Empiricus, Empiricus Investimentos, Genial Investimentos, Guide Investimentos, Inter, Inv, Itaú BBA, Levante, Mirae Asset, MyCap, Modalmais, Órama, Planner, Banco Safra, Santander, Terra Investimentos, Toro, XP Investimentos, Warren and PagBank.
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